Does backdating explain the stock price pattern around

You'll see prices go up and down by a percentage point or two with occasional larger swings.

On most days, investors choose to buy or sell shares based on their evaluation of the company's balance sheet, and their overall impression of whether a company is fairly priced.

Consider the pressure facing a large number of technology start-up companies that were competing intensely for talent and lacking the ability to compensate employees with cash.The benefit of the resulting jump in stock price would go to the holder of the option.see Exhibit 1 for an example of an options grant that may have been well timed or may have been backdated to maximize the benefit to the option holder.Because the stock market functions like an auction, when there are more buyers than there are sellers, the price has to adapt or no trades are made.This tends to drive the price upwards, increasing the market quotation at which investors can sell their shares, enticing investors who had previously not been interested in selling to sell.

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